Argentina's Bioceres cancels U.S. IPO until further notice

Reuters Staff

3 Min Read

BUENOS AIRES (Reuters) - Argentine biotechnology firm Bioceres (BIOX.BA) suspended until further notice the offer period for its U.S. initial public offering (IPO) because of the volatility of international markets, it said in a Thursday securities filing.

The company had delayed the IPO by a day for two straight days this week. Two Argentine companies raised less than expected in New York Stock Exchange IPOs last week.

“The offer period is suspended until further notice at the opportune time,” Bioceres said in a filing to the Buenos Aires stock exchange.

Brazil’s Blau Farmaceutica on Wednesday postponed an IPO in Sao Paulo for up to 60 days due to weak demand, according to a person with knowledge of the decision.

Argentine companies had been racing to list shares abroad ahead of an expected rise in U.S. interest rates, taking advantage of growing investor confidence in Latin America’s No. 3 economy due to President Mauricio Macri’s pro-business policies after more than a decade of populist rule.

But a sharp drop in U.S. equities last week complicated the listings of airport operator Corporation America Airports SA (CAAP.N) and power generator Central Puerto SA (CEPU.BA), which priced their shares below initial ranges.

World stock markets remained on shaky ground on Thursday as U.S. bond yields crept back toward four-year highs after congressional leaders reached a two-year budget deal to raise government spending by almost $300 billion.

Rosario-based Bioceres develops genes for soy, corn and wheat that withstand drought and cold weather. It makes insecticides, fungicides, biofertilizers and chemical-based fertilizers. Argentina is the world’s No. 3 exporter of corn and raw soybeans and the leading shipper of soy meal and soy oil.

The indicated price range for the Bioceres IPO is $10 to $12 per share, the company said in an earlier filing.